Legal Question in Business Law in Michigan

General parternship problem

Several years ago, our mother transferred a resort to myself and 3 siblings. All four names appear on the deed. There is no formal partnership agreement. Each of us live in different states--WI, OH, KY and NC. The resort is located in MI. Our brother who lives in NC is experiencing financial difficulty (failing business, divorcing, etc.) As a 25 percent owner: (1) Can he force the sale of the property? (2) Can he sell his interest to anyone without the approval of the remaining owners? (3) Can he force the remaining owners to buy him out (which would be a financial hardship for 2 of the 3)? (4) If he declares bankruptcy, can the court force a sale of the property? Thank you in advance for any information you can provide.


Asked on 12/05/07, 10:48 pm

2 Answers from Attorneys
Thomas Schober Schober Schober & Mitchell, S.C.

Re: General parternship problem

First, Michigan law would probably apply, since the Real Estate is there. If it were Wisconsin, one owner could ask a court to partition the property. If not divisible, it would be sold and the proceeds divided. He could also sell his interest, but selling a 1/4 interest would be difficult. WI law would not allow him to force others to buy him out. If he files bankruptcy, the property would go to his creditors to decide if they wanted to ask a court to partition the property. While I would imagine MI law may be somewhat similar, you should either contact a MI atty or contact a WI attorney to do that for you. Good luck!

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Answered on 12/05/07, 11:41 pm
Peter Torrice Canu, Torrice & Zalewski, PLLC

Re: General parternship problem

In Michigan it depends how the property is held. If it is held as Joint Tenants the person has an undivided 25% interest. If it is held as Tenants in Common then he can sell his interest in the property without the others consent or ask the court to partition it (expensive). Filing bankruptcy will cause some big problems, which can be avoided if the property is worth some money. The other owners may have the opportunity to buy him out. Call me for questions 5862851700

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Answered on 12/06/07, 10:21 am


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